Industrial Banks

These are special types of banks. They lend money to the industries for purchasing machinery land, building, furniture etc. They advance credit for long periods, 10,15 or 20 years. They receive deposits for long periods. They generally raise fund by issuing debentures. These banks also keep an expert staff to judge the value of land, building, machinery etc. Of the industries. There are hardly such banks in Pakistan. In foreign countries like Japan and Germany, these banks have helped a great deal in the development of these countries. Industries Development Bank of Pakistan (IDBP) and Pakistan Industrial Credit and Investment Corporation (PICIC) are playing very important role for financing and promoting industries in Pakistan.

Land Mortgage Banks

These banks advance loans to cultivators for long term needs such as the paying off old debts, purchasing of land, purchasing costly machinery and effecting permanent improvement of land. They keep expert evaluators of land and on receipt of an application for loan.they get the land valued and find out that the land is not ready pledged or encumbered.They do not advance money for more than 50% value of the land mortgaged with them. Hardly there is a bank of such a nature in Pakistan, although the need for them is very great.

Cooperative Banks

These banks grant loan to agriculturist for financing current agriculture needs such as for purchasing seeds, manure, implements, ploughs, bullocks and even fir digging wells and purchasing land. These banks mostly raise their funds from loans, reserve fund and sometimes from share capital. They do not generally receive deposits. They generally lend money on personal security. The underlying principle of these banks is generally self-help.

Commercial Banks

There banks deal with businessmen and traders. They receive money on fixed, current, saving and home safe account. They lend money for short periods of three months against easily marketable securities such as bills of exchange, agricultural produce like jute, rice, wheat etc and government securities. There are schedule banks in Pakistan, They grant loans for financing trade and industry where money is required for financing temporary contingency.

Kinds Of Banks

In the present world of specialization we come across different types of banks. All of them are called banks, because they borrow money from the public and later on lend it to the public in need. But they differ from one another in the following respects

W.T.O

There was once a time when countries concentrated on increasing exports and reducing imports. Countries did not believe imports to be a very good things. They imposed restrictions on the imports of goods from different countries. This phenomenon was called mercantilism. But in recent years, efforts have been made to encourage free trade between countries.

W.T.O was established on 15th April 1994. It stands for World Trade Organization. It replaced an earlier organization GATT. It was established with a primary objective to promote free trade between countries. At the time of establishment, 117 countries joined the organization. Later many more countries entered the bracket of W.T.O. In 2004, the deadline for removing unnecessary restrictions on imports passed away. Now, the joining countries are obliged to allow everyone who wants to exports goods to the joining countries. W.T.O also recognize intellectual property rights and its rules and regulations cover traditional goods and services as well as intellectual properties.  

Source of Foreign Exchange

Agricultural sector supplies raw materials and semi-finished items to the different countries of the world through which foreign exchange is earned. The earned foreign exchange is consumed on the purchase of the goods and services which do not produce but they are indispensable for the development of the economy like minerals, machines, heavy chemicals, tools etc. In other words agricultural sector is not only the source of foreign exchange earning but is also plays the important role in making the industrial base sound and stable.